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If the $87 billion

rate welfare programs, Congress soon found

Government or from the official publications

itself unable, because of institutional and

of the agencies, bureaus, and programs.

in corporate wel-

political biases, to downsize the defense bud-

fare were elimi-

get at a time when doing so was widely and

Department of Agriculture

nated tomorrow,

often cited by members of both parties as an

Agricultural Credit Insurance Fund. The

important goal.

Agricultural Credit Insurance Fund provides

and personal

Another benefit for taxpayers of having a

direct loans and loan guarantees for people

income taxes were

commission address the issue of corporate

seeking credit to improve or purchase farms

welfare is that those often egregious pro-

or to offset the cost of operating a farm.

lowered by the

grams could be discussed openly and pub-

There is no reason taxpayers should subsi-

same amount for

licly in a focused proceeding. The exposure of

dize this activity, especially when it is dupli-

the year, taxpay-

a substantial portion of the federal budget--

cated by the private sector.

indeed, an overall reappraisal of what the fed-

Agricultural  Marketing  Service.  The

ers would receive

eral government does--is a long-needed tonic

Agricultural Marketing Service collects data

a tax cut more

to the current state of affairs.

on agricultural commodity markets and,

than twice as

through its Market News reports, makes that

information available to agricultural produc-

large as the rebate

Conclusion

ers, processors, distributors, and others to

checks mailed out

assist them in the marketing and distribu-

If the $87 billion in corporate welfare were

tion of farm products. Through its market

in 2001.

eliminated tomorrow, and personal income

protection and promotion activities, AMS

taxes were lowered by the same amount for the

aids in the promotion of cotton, potatoes,

year, taxpayers would receive a tax cut more

eggs, milk and dairy products, beef, pork,

than twice as large as the rebate checks mailed

soybeans, honey, watermelon, mushrooms,

out in 2001. The budget savings over five years

wool, lamb, and cut flowers.

would amount to $435 billion, far more than

Agricultural Research Service. The Agricul-

the marginal income tax rate reductions in the

tural Research Service conducts research

recent tax cut, which amount to $298 billion

focused on increasing the productivity of the

over five years. Cutting corporate welfare

nation's land and water resources, improving

would be an excellent show not only of fiscal

the quality of agricultural products, and find-

prudence but also of willingness to begin the

ing new uses for those products. As that

much-needed reassessment of the current role

research inevitably serves to enhance the prof-

of government and to make a hearty attempt

itability of farming, it should be funded direct-

at returning the federal government to consti-

ly by private farmers, not by all taxpayers.

tutional limits.

Commodity Credit Corporation: BioEnergy

Program. This program provides "incentive

payments" to producers of ethanol, biodiesel,

Appendix 1: Descriptions of

and other bio-based fuels. Most of the money

Corporate Welfare

goes to giant agricultural companies such as

Archer Daniels Midland. Taxpayer money

Programs

should not be used to underwrite the profit

margin of any company or producer of fuel

This appendix provides descriptions of

or any other product.

the programs this report categorizes as cor-

porate welfare. These programs should be

Commodity Credit Corporation: Export Loans

Program. The Commodity Credit Corpora-

eliminated, or in some cases privatized, and

tion's Export Loans Program promotes the

the savings should be returned to the taxpay-

export of U.S. agricultural commodities by

er by cutting taxes. Unless otherwise indicat-

providing guaranteed and subsidized loans

ed, the information used in the descriptions

to the purchasers of those exports. The U.S.

comes from the Budget of the United States

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